NO NEGATIVE EFFECT FROM ESKOM SPLIT

BABANE – The imminent split of Eswatini’s major source of electricity supply will not have a negative effect.

This assurance has been given by Eswatini Energy Regulatory Authority (ESERA).
The guarantee was given by regulator of the Eswatini power industry after it was disclosed that embattled State-owned electricity producer would be split, under Eskom Holdings, into three separate entities – generation, transmission and distribution – in an effort to bring credibility to the turnaround of the utility and to position South Africa’s power sector for the future, Engineering News reported.  

Unbundling

On the basis that the country’s nearly 80 per cent electricity demand gets sourced from Eskom through a bilateral agreement, ESERA Manager Consumer and Stakeholder Sikhumbuzo Nkambule was asked what would be the immediate effect, to which he responded: “The unbundling of ESKOM should not necessarily lead to a negative effect on the agreement they have with the Kingdom of Eswatini.”

Nkambule pointed out that the unbundling of ESKOM was an effort to improve efficiency and productivity as well as better manage the operations of the utility.
He clarified that the process was an internal strategic decision which should not negatively affect service delivery to ESKOM’s customers.
Nkambule said Eswatini was among the international customers that ESKOM exports its power to.

“There are time-bound binding agreements between ESKOM and its customers, which are meant to ensure smooth and reliable supply of power. Any challenges that may have an impact on the supply of power are always communicated in advance,” Nkambule said.
However, Nkambule highlighted that the regulator, in collaboration with the Ministry of Natural Resources and Energy, was not banking hopes on long-term reliance on imports for supply of power.
He mentioned that efforts were being made to increase local capacity of power to improve security of supply.

Expansion

Nkambule stated that a Short-term Generation Expansion Plan (SGEP) (targeting projects that could be implemented within the next five years starting in 2018), has been developed by the ministry and approved by the Government of Eswatini.

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